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OFX vs. TransferWise
Get your cash where it needs to go in one to two days with no fees.
OFX has been in the money transfer business for 17 years. It serves a diverse range of needs for people and businesses managing payments abroad, offering strong exchange rates and charging no transfer fees for transfers of $1,000 per year or more.
Established in 2011, TransferWise uses the mid-market rate to send transfers of up to $199,999.
Compare OFX to TransferWise
How they work?
With OFX, you go to its site, enter how much money you’re transferring and either send your funds to an OFX account or link your bank account so OFX can pull funds directly. OFX then converts your currency and sends it to your recipient, who collects it via bank transfer.
For TransferWise, you go to its site, select the currencies you are exchanging and indicate how much you want to send. After reviewing your rate and fee, money is pulled from your bank account and matched to a sender.
Who offers lower fees?
OFX charges no transfer fees when sending $1,000 or more around the world.
With TransferWise, fees depend on where and how you’re sending money. They range from 0.55% to 2.35% of your transaction — and sometimes a bit higher, plus a fixed fee depending on the currency you’re transferring to. To send $1,000 to China, you’ll pay 1.1% of your transaction (or $12) plus a fixed fee of $8; to the Philippines, the fee drops to 0.75% ($7.50) plus a fixed fee of $3.50. You can easily find out what you’ll pay by visiting its “How much does TransferWise cost?” page.
TransferWise’s fees are among the lowest in the industry. But OFX’s transparency and $0 fees for all transfers make it the clear winner.
Who offers better exchange rates?
We’ll look at the rates OFX and TransferWise offer compared to the mid-market rate.
A typical exchange rate at OFX is about 0.4% above the mid-market rate — a competitive rate any way you look at it.
So if you need to send $1,000 to the Philippines:
- If the mid-market rate is 1 USD = 49.74 PHP
- OFX’s exchange rate could be 1 USD = 48.88 PHP
Exchange rates is where TransferWise shines. It’s one of the only money transfer services that offers you the mid-market rate. So if you’re sending $1,000 to the Philippines and the mid-market rate is 1 USD = 0.82 EUR, that’s the rate you’re going to get.
Though OFX and TransferWise offer similar competitive rates, there’s no denying the power of paying the mid-market rate.
Case Study: Sending $1,000 to Mexico
Say you want to send $1,000 to buy office equipment for a business expansion in Mexico City. Here’s what an online bank-to-bank transfer would look like with OFX and TransferWise.
|Exchange rate||1 USD = 21.525 MXN||1 USD = 21.529 MXN|
|Transfer speed||Up to 4 business days (1–2 to OFX, 1–2 to recipient)||1–4 days|
|Total received||21,525 MXN||21,352 MXN|
This one is a close call. While you could shave some time off the transfer speed with TransferWise, you save nearly $10 on the transfer fee alone by going with OFX. The difference between exchange rates, however, is too minimal to weigh.
Our pick: TransferWise
When you need to send money, benefit from competitive mid-market exchange rates and straightforward fees with TransferWise.
- Fair service fees and mid-market rates — a major market differentiator.
- Next-day delivery to your loved ones and businesses.
- Trusted the world over, with five-star ratings on Trustpilot.
To transfer your money to OFX, it takes one to two business days. It takes another one to two days to send that money from OFX to your recipient. You’re looking at least two business days to complete a transaction from send to receipt.
Depending on the currencies involved and your payment method, it could take up to four business days for your recipient to see your cash.
Your average transfer may take about the same time with both services.
Who offers more options?
|Payment Methods||Minimum and maximum transfers||Delivery methods||Transfer speeds||Countries and currencies|
|OFX||Electronic funds transfer (EFT)||$1,000 minimum per year; no maximum||Bank transfer||1–2 business days to transfer to OFX; 1–2 business days to transfer to recipient||195 countries and 55 currencies (exclusions include Afghanistan, Cuba, Iran, Iraq, North Korea, Libya and Syria)|
|TransferWise||Bank account||$1 minimum; $36,000 maximum||Bank account||1–4 days||Nearly 40 currencies|
When it comes to international money transfers, both OFX and TransferWise are forces to be reckoned with. It’s too close to call which is better for your situation. Ultimately, you’ll need to weigh your specific details or compare further options to find the service that’s right for you.
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